Cost of living in Germany: Your guide

TransferWise

19.07.17

5 minute read

Germany is Europe’s economic powerhouse, so it's no surprise that many expats arrive here to pursue job opportunities in one of the major cities. However, with world class universities, which in most cases offer free tuition, it’s also the perfect place to come as an international student to complete your studies. Finally, with some cities offering pleasingly low costs of living with excellent amenities and infrastructure, retiring in Germany is also an increasingly popular choice for foreigners.

Whether you’re retiring, going to work, temporarily relocating, or moving to Germany for good, it’s helpful to have a picture of what life there will cost as an expat. Here’s a quick guide.

How expensive is Germany in comparison to the UK, the EU, the USA and Australia?

The official currency in Germany is the Euro (EUR or € on currency exchanges).

You can find out the exact value of your money in EUR, using an online currency converter - but here’s a rough guide:

1000 USD = 897 EUR

1000 GBP = 1139 EUR

1000 AUD = 678 EUR

Comparing basic cost of living

1 bedroom flat in city centre (monthly rent)

Lunch for 2 (3 courses, mid range restaurant)

Transportation (monthly pass)

Berlin, Germany

EUR 739

EUR 40

EUR 81

Munich, Germany

EUR 1,030

EUR 50

EUR 65

London, UK

EUR 1,919

EUR 62

EUR 149

New York City, USA

EUR 2,675

EUR 67

EUR 105

Sydney, Australia

EUR 1,757

EUR 54

EUR 109

One major factor that adds expense for expats in Germany, is the cost of converting cash to EUR from your home currency. Even if your bank says it offers fee-free money exchange, you can be sure that its cut is rolled up in the exchange rate it uses. To get the best deal, you should use an exchange service like TransferWise, which applies the same rate you’ll find on Google. With a quick service, and low flat fees to transfer your cash, this can be a much better deal than relying on your home bank.

What are the general living expenses for Germany? How much can you get by on?

The costs of living in Germany are fairly reasonable compared to other European countries. However, there’s significant variance between individual cities, with the capital Berlin actually far cheaper for rent and daily expenses than other cities such as Munich. If you're on a fixed income, however, it's good to know that a great life in Germany could be even cheaper if you move away from the big cities.

Living expenses in Germany (excluding rent)

Berlin average cost

Munich average cost

Single person, per month

EUR 733

EUR 799

Single person, per year

EUR 8,796

EUR 9,588

University student, per month

EUR 588

EUR 613

4 person family, per month

EUR 2,497

EUR 2,747

4 person family, per year

EUR 29,964

EUR 32,964

What are the average salaries in Germany?

Salaries in Germany are above average with IT and engineering roles among the best paid choices in Berlin. However, reflecting the higher cost of living, Munich has higher salaries on average than the capital. With an emerging startup and tech scene, the focus in Munich is also on IT and engineering based professions. In fact, Munich is home to the 15th best paid QA engineers in the world. For reference, the figures below are for the capital, Berlin. Check out what you could earn, here:

Salary averages for Germany

Average annual salary

Cashier

EUR 13,316

Copywriter

EUR 37,349

Financial analyst

EUR 47,023

Graphic designer

EUR 28,179

Mobile developer

EUR 32,751

Product manager

EUR 45,956

Receptionist

EUR 19,131

Software engineer

EUR 44,469

Teacher

EUR 28,194

Web developer

EUR 35,392

How expensive is housing and accommodation in Germany?

One of the major factors determining how expensive life in Germany will be for you, is where you choose to live. Berlin offers low rents, despite its status as a major European capital - although prices are now rising rapidly here too.

Most of Germany’s major cities have excellent public transport facilities, which allow people to live outside of the city and commute easily for work. This widens the choice of accommodation significantly. Naturally, if you move outside of the big cities, you can rent in Germany for even less. See what it might cost you here:

Renting in Germany

Average monthly cost (Berlin)

Average monthly cost (Munich)

One bedroom apartment (city centre)

EUR 739

EUR 1,030

One bedroom apartment (outside of city centre)

EUR 548

EUR 790

Three bedroom family home (city centre)

EUR 1,439

EUR 1,950

Three bedroom family home (outside of city centre)

EUR 1,050

EUR 1,456

Internet

EUR 25

EUR 24

Utilities (gas, electric and water for a 85m2 apartment)

EUR 232

EUR 242

What about healthcare and dental costs in Germany?

The German healthcare system is very strong. It's compulsory for all citizens and residents to have either public or private health insurance, which is often provided in part through your employer. Having private health insurance can mean you get access to services quicker than you might through the public system.

Healthcare service

Average cost to you

Family doctor check-up

EUR 62

Cold medicine for 6 days

EUR 6

Antibiotic prescription

EUR 7

How much is travel and transportation in Germany?

The cost of travel in the major cities in Germany is very reasonable. In fact, across most of Germany you'll find a very strong public transportation system if you prefer not to drive, but instead need to commute to a job in one of the towns or cities.

Transportation and vehicle prices for Germany

Average cost

Gasoline (1 litre / 0.25 gallon)

EUR 1.33

Monthly bus/transport pass

EUR 81

Bus ticket, single use

EUR 2.70

Taxi tariff, 8km/5mile journey

EUR 20

Toyota Corolla, new

EUR 18,023

VW Golf, new

EUR 18,269

How much does education cost?

From 2014 it has been free to study at all German public universities - for both home and international students. All you had to pay was some admin costs. However, the costs of this programme are currently under review, and some states are planning on reintroducing fees for non EU students in the near future.

School

Average cost

Preschool / kindergarten (monthly fee)

EUR 60

Private school for lower grades (annual)

EUR 16,000

University tuition

Currently free - however costs to non EU students are under review

Whether it's an exuberant Oktoberfest or a magnificent Bavarian castle, most people have a mental image of Germany. Few, however, really know how much there is on offer in this large and varied country. In fact, you can still find yourself ‘off the beaten track’ here in this very heart of the EU. This makes Germany a great expat destination, whether you’re considering a permanent move, or just looking to spend a year or two exploring somewhere new.